Technical Analysis of Financial Markets

Sunday, March 18, 2007

Hewlett-Packard Co. (HPQ)

Believing its stock price remains undervalued in spite of doubling in price over the past two years, Hewlett-Packard announced on Friday it is to spend $8bn on a share buy-back programme; Price action could be forming a very speculative bearish Head & Shoulders pattern. Confirmation of the pattern occurs on break of the $38 neckline with a price target of $34. Stop-loss close above $40.50 invalidating the formation.

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